Aging and Income Convergence in Europe : A Survey of the Literature and Insights from a Demographic Projection Exercise

The current and projected low fertility levels for Europe and the continuous increases in life expectancy imply that the region will go through an unprecedented process of population aging, leading to sizable changes in the age structure of European societies. After reviewing the existing literature...

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Main Authors:	Crespo Cuaresma, Jesús, Loichinger, Elke, Vincelette, Gallina
Format:	Journal Article
Language:	en_US
Published:	Elsevier 2016
Subjects:	aging labor force demographic implications of aging demographic projections human capital economic growth
Online Access:	http://hdl.handle.net/10986/23673

id	okr-10986-23673
recordtype	oai_dc
spelling	okr-10986-236732021-04-23T14:04:16Z Aging and Income Convergence in Europe : A Survey of the Literature and Insights from a Demographic Projection Exercise Crespo Cuaresma, Jesús Loichinger, Elke Vincelette, Gallina aging labor force demographic implications of aging demographic projections human capital economic growth The current and projected low fertility levels for Europe and the continuous increases in life expectancy imply that the region will go through an unprecedented process of population aging, leading to sizable changes in the age structure of European societies. After reviewing the existing literature on the role played by demographic change as a determinant of economic growth and income convergence, with a focus on the European experience, we analyze the quantitative impact of the projected changes in the age and education composition of the labor force. Using newly available demographic projections, we show that the current demographic trends are expected to cause a slowdown in the speed of income convergence across European countries. Our projection exercise suggests that policies aimed exclusively at improving labor force participation do not appear to be sufficient to counteract the negative effects of aging on income convergence. Instead, we show that reducing the educational attainment gap between Central and Eastern European member states and the rest of the European Union in addition to increasing labor force participation leads to an accelerated pace of income convergence. 2016-01-19T19:56:58Z 2016-01-19T19:56:58Z 2015-11-25 Journal Article Economic Systems 0939-3625 http://hdl.handle.net/10986/23673 en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Elsevier Publications & Research :: Journal Article Publications & Research Europe and Central Asia Eastern Europe Europe European Union
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	aging labor force demographic implications of aging demographic projections human capital economic growth
spellingShingle	aging labor force demographic implications of aging demographic projections human capital economic growth Crespo Cuaresma, Jesús Loichinger, Elke Vincelette, Gallina Aging and Income Convergence in Europe : A Survey of the Literature and Insights from a Demographic Projection Exercise
geographic_facet	Europe and Central Asia Eastern Europe Europe European Union
description	The current and projected low fertility levels for Europe and the continuous increases in life expectancy imply that the region will go through an unprecedented process of population aging, leading to sizable changes in the age structure of European societies. After reviewing the existing literature on the role played by demographic change as a determinant of economic growth and income convergence, with a focus on the European experience, we analyze the quantitative impact of the projected changes in the age and education composition of the labor force. Using newly available demographic projections, we show that the current demographic trends are expected to cause a slowdown in the speed of income convergence across European countries. Our projection exercise suggests that policies aimed exclusively at improving labor force participation do not appear to be sufficient to counteract the negative effects of aging on income convergence. Instead, we show that reducing the educational attainment gap between Central and Eastern European member states and the rest of the European Union in addition to increasing labor force participation leads to an accelerated pace of income convergence.
format	Journal Article
author	Crespo Cuaresma, Jesús Loichinger, Elke Vincelette, Gallina
author_facet	Crespo Cuaresma, Jesús Loichinger, Elke Vincelette, Gallina
author_sort	Crespo Cuaresma, Jesús
title	Aging and Income Convergence in Europe : A Survey of the Literature and Insights from a Demographic Projection Exercise
title_short	Aging and Income Convergence in Europe : A Survey of the Literature and Insights from a Demographic Projection Exercise
title_full	Aging and Income Convergence in Europe : A Survey of the Literature and Insights from a Demographic Projection Exercise
title_fullStr	Aging and Income Convergence in Europe : A Survey of the Literature and Insights from a Demographic Projection Exercise
title_full_unstemmed	Aging and Income Convergence in Europe : A Survey of the Literature and Insights from a Demographic Projection Exercise
title_sort	aging and income convergence in europe : a survey of the literature and insights from a demographic projection exercise
publisher	Elsevier
publishDate	2016
url	http://hdl.handle.net/10986/23673
_version_	1764454515892813824

Aging and Income Convergence in Europe : A Survey of the Literature and Insights from a Demographic Projection Exercise

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